Reminder: How Nominet's wholesale price has evolved over the years...

[Edwin]

Here's how Nominet has increased its wholesale domain price by an effective 212% in the last 5 and a half years. (Assumes that the .uk is required for defensive purposes.)

No wonder they've chucked mega-millions down the commercial ventures drain!

 

[Edwin]

Sorry, a bit of the table got cut off (year was missing off one of the dates). Can't seem to edit embedded graphics, so am reposting it below.

 

[Edwin]

What does all that mean in practice?

Well, if you're a bulk domain owner, your carrying costs look like this (assuming you've been forced to retain the matching .uk for defensive purposes):

500 domains:
£1,500/year all-in, up to 10 June 2014.
£4,680/year all-in today. An increased cost of £3,180/year.

1000 domains
£3,000/year all-in, up to 10 June 2014.
£9,360/year all-in today. An increased cost of £6,360/year.

2000 domains
£6,000/year all-in, up to 10 June 2014.
£18,720/year all-in today. An increased cost of £12,720/year.

5000 domains
£15,000/year all-in, up to 10 June 2014.
£46,800/year all-in today. An increased cost of £31,800/year.

That, more than any other factor, is why the domain name aftermarket is all but unviable in 2021. (Yes, there have also been major changes to SEO, the rise of mobile, the primacy of social media channels and apps, etc. But the biggest issue bar none is this gargantuan increase in carrying costs.)

 

[BG]

Thanks for taking the time out to share Edwin, appreciated!

 

[dee]

Thats a pretty good reality check. Thanks Edwin.

 

[jhm]

Interesting data, appreciate the share Edwin

 

[willbon]

Thanks for the info Edwin... I was wondering why I was poor.

Slightly related question for you....

If renewals were extended to 2 years rather than 1.. for the same price... would Nominet still be 'profitable' ?

 

[webber]

It's "very reasonable"

 

[monaghan]

Thanks for the info Edwin... I was wondering why I was poor.

Slightly related question for you....

If renewals were extended to 2 years rather than 1.. for the same price... would Nominet still be 'profitable' ?

Nominet doesn't need to be profitable, it just need to break even and have a little over for contingency / technology refresh! It's the quest for profit by the board of a not for profit company that's got us to where we are now.

 

[willbon]

That's my point really...I think if they doubled the reg time for current price then the .uk namespace would be a better place.. and the impact of minimum 2 year reg's would also help the aftermarket... and hopefully make drops more of a premium product..... but what do I know?

 

[boxfish]

That, more than any other factor, is why the domain name aftermarket is all but unviable in 2021.

Removing Nominet's profit from the equation........

So, apart from domainers, more people benefit and have access to better quality domains?

A slightly higher reg fee every year for every domain but hundreds of thousands of domains not being stockpiled year after year in the hope of £XXXX sales that will never happen.

I know this is a domaining forum but for small businesses this has to be a win.

 

[monaghan]

Removing Nominet's profit from the equation........

So, apart from domainers, more people benefit and have access to better quality domains?

A slightly higher reg fee every year for every domain but hundreds of thousands of domains not being stockpiled year after year in the hope of £XXXX sales that will never happen.

I know this is a domaining forum but for small businesses this has to be a win.

Not sure that everyone is going to start letting go of the large value domains, yes there may be more domains available, but these will just be the more questionable low end ones that haven't sold

 

[martin-s]

I know this is a domaining forum but for small businesses this has to be a win.

Except that trust in .uk has been damaged and confusion now reigns.